BI Keeps 5.75% Rate, Phases in Lower Bank Reserve Ratios
The higher deposit facility and reserve-ratio cuts are expected to add about Rp190 trillion in banking liquidity.
Bank Indonesia kept the BI-Rate at 5.75 percent at its October 2026 Board of Governors meeting, while raising the deposit facility rate by 25 basis points to 5 percent and holding the lending facility at 6.5 percent. BI also strengthened incentives for the Domestic Non-Deliverable Forward instrument to attract foreign capital inflows and support rupiah stability. On liquidity, reserve requirements for conventional commercial banks were cut from 9 percent to 7 percent in two stages on Nov. 1 and Dec. 1, 2026. For sharia commercial banks and sharia business units, reserve requirements fell from 7.5 percent to 5.5 percent on the same schedule. BI Governor Destry Damayanti said the move is aimed at keeping inflation in check in 2026-2027 and adding banking liquidity estimated at nearly Rp190 trillion.